Three Hot Tax Topics for Businesses

With each new tax season comes fresh changes! To help you out, we interviewed Henry & Peters Officer Adrienne Deason, CPA about three hot topics businesses should know about before filing their 2023 tax returns.

First, the reporting requirements have changed for Texas Franchise Reporting. A couple of highlights that may impact your 2023 filing are:

The No Tax Due filing exemption amount has increased to $2,470,000. Entities with total gross receipts less than or equal to $2,470,000 are not subject to Texas Franchise Tax.
Reporting requirements have been changed if you meet the No Tax Due exemption, including updates for Combined Groups meeting the exemption amount.

Second, the Corporate Transparency Act established entity reporting requirements for certain Corporations, LLC’s and other business entities known as Beneficial Ownership Information (BOI). Changes to consider before filing your 2023 taxes include:

Existing entities formed or registered prior to January 1, 2024 will have until January 1, 2025 to complete their reporting requirements.
New entities formed in 2024 will need to complete these reporting requirements within the first 90 days of formation.
Penalties will apply for failure to meet the reporting requirements in a timely manner.

For more information about the changes to BOI reporting requirements, frequently asked questions, or to subscribe to FinCEN (Financial Crimes Enforcement Network) updates, visit fincen.gov.

The third and final 2023 hot tax topic we’d like to address is the proposed legislation currently going through Congress which has the potential to change 2023 tax laws. So, what does this mean for businesses? It can get complicated as there are many factors that may come into play, but in general it could mean:

Reinstate 100% bonus depreciation for 2023 (and through 2026). If your business could benefit from the 100% bonus depreciation deduction, you should consult your CPA for advice on filing your 2023 tax returns.

Possible changes to capitalization of Research and Experimentation (R&E) expenses, currently referred to as Code Sec. 174 capitalization. If you have R&E expenses or have previously claimed tax credits for R&D expenses, we recommend consulting with your CPA for advice on filing your 2023 tax returns.

Whether you do your own taxes or hire a professional to handle this task, staying up to date with current tax changes is key to an advantageous tax filing. For tax information, visit irs.com.

Have questions about your VeraBank business account? We’re happy to help! Please contact one of our business banking specialists today!

And as a reminder, for entities on a calendar year, the deadline to file your 2023 taxes is March 15, 2024 for Partnerships and S Corporations, and April 15, 2024 for C Corporations. Don’t let the due date sneak up on you – the sooner you start the filing process, the better!

Disclaimer
VeraBank does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal or accounting advice.You should consult your own tax, legal and accounting advisors before making any financial decisions.